The foundation for the Quackenbush Square makeover at at 705 Broadway is dug on Monday, April 30, 2018, in Albany, N.Y. The $21 million project by Syracuse-based Pioneer Companies ncludes three, 7- to 10-story residential buildings that can accommodate about 181 units, a 136-room hotel, and about 24,548 square feet of ground-level retail space situated around an urban plaza and over an underground parking structure are planned for the site. About half of the retail space is expected to be restaurants, according to project documents. (Will Waldron/Times Union) less

The foundation for the Quackenbush Square makeover at at 705 Broadway is dug on Monday, April 30, 2018, in Albany, N.Y. The $21 million project by Syracuse-based Pioneer Companies ncludes three, 7- to 10-story ... more

The foundation for the Quackenbush Square makeover at at 705 Broadway is dug on Monday, April 30, 2018, in Albany, N.Y. The $21 million project by Syracuse-based Pioneer Companies ncludes three, 7- to 10-story residential buildings that can accommodate about 181 units, a 136-room hotel, and about 24,548 square feet of ground-level retail space situated around an urban plaza and over an underground parking structure are planned for the site. About half of the retail space is expected to be restaurants, according to project documents. (Will Waldron/Times Union) less

The foundation for the Quackenbush Square makeover at at 705 Broadway is dug on Monday, April 30, 2018, in Albany, N.Y. The $21 million project by Syracuse-based Pioneer Companies ncludes three, 7- to 10-story ... more

The foundation for the Quackenbush Square makeover at at 705 Broadway is dug on Monday, April 30, 2018, in Albany, N.Y. The $21 million project by Syracuse-based Pioneer Companies ncludes three, 7- to 10-story residential buildings that can accommodate about 181 units, a 136-room hotel, and about 24,548 square feet of ground-level retail space situated around an urban plaza and over an underground parking structure are planned for the site. About half of the retail space is expected to be restaurants, according to project documents. (Will Waldron/Times Union) less

The foundation for the Quackenbush Square makeover at at 705 Broadway is dug on Monday, April 30, 2018, in Albany, N.Y. The $21 million project by Syracuse-based Pioneer Companies ncludes three, 7- to 10-story ... more

Syracuse-based Pioneer Cos. officials presented a plan to build three buildings  rising as high as nine stories  that would house retail, residential housing and a hotel near Quackenbush Square in Albany to city planners on Monday, Jan. 9, 2017. (QPK Design) less

Syracuse-based Pioneer Cos. officials presented a plan to build three buildings  rising as high as nine stories  that would house retail, residential housing and a hotel near Quackenbush Square in Albany to ... more

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A rendering of the multi-building development planned for Quackenbush Square at 705 Broadway, just north of downtown Albany. (Illustration from city of Albany.)

A rendering of the multi-building development planned for Quackenbush Square at 705 Broadway, just north of downtown Albany. (Illustration from city of Albany.)

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Renderings of a proposed project at 705 Broadway in Albany submitted to the Albany Planning Board in 2017 by Pioneer Companies

Renderings of a proposed project at 705 Broadway in Albany submitted to the Albany Planning Board in 2017 by Pioneer Companies

Photo: Pioneer Companies

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Click through the slideshow for a few apartment options that could be coming soon.

110 apartments in four, four-story buildings has been proposed for Playdium bowling alley at 363 Ontario St. in Pine Hills.

Click through the slideshow for a few apartment options that could be coming soon.

110 apartments in four, four-story buildings has been proposed for Playdium bowling alley at 363 Ontario St. in Pine Hills.

Photo: Lori Van Buren

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A rendering of the apartment complex proposed for the site of the Playdium bowling alley at 363 Ontario Street in Albany. (Illustration from city of Albany.)

A rendering of the apartment complex proposed for the site of the Playdium bowling alley at 363 Ontario Street in Albany. (Illustration from city of Albany.)

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A six-story, 206,756-square-foot dorm with 327 beds has been proposed for 1211 Western Ave. near the University at Albany.

A six-story, 206,756-square-foot dorm with 327 beds has been proposed for 1211 Western Ave. near the University at Albany.

Photo: LUANNE M. FERRIS, DG

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A rendering of the 327-bed dorm proposed for 1211 Western Avenue near the University at Albany. (Illustration from city of Albany.)

A rendering of the 327-bed dorm proposed for 1211 Western Avenue near the University at Albany. (Illustration from city of Albany.)

A rendering of the multi-building development planned for Quackenbush Square at 705 Broadway, just north of downtown Albany. (Illustration from city of Albany.)

A rendering of the multi-building development planned for Quackenbush Square at 705 Broadway, just north of downtown Albany. (Illustration from city of Albany.)

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In August 2017, The former Kenwood Academy, most recently home to the Doane Stuart School, was sold to a developer, Kenwood Commons LLC, with plans for luxury condominiums and an arts and cultural center.

In August 2017, The former Kenwood Academy, most recently home to the Doane Stuart School, was sold to a developer, Kenwood Commons LLC, with plans for luxury condominiums and an arts and cultural center.

Latham-based developer Abar Construction announced plans to redevelop Rodgers Liquor Warehouse at 960 Broadway into apartments, a restaurant and retail space in 2016. We reported in February the developer was facing more than $168,000 in federal fines for allegedly allowing workers in the renovation to be exposed to asbestos, lead and potentially dangerous falls, according to the U.S. Occupational Safety and Health Administration. less

Latham-based developer Abar Construction announced plans to redevelop Rodgers Liquor Warehouse at 960 Broadway into apartments, a restaurant and retail space in 2016. We reported in February the developer was ... more

Exterior of the former Rodgers Liquor Warehouse at 960 Broadway on Monday, Feb. 13, 2017 in Albany, N.Y. There are plans to convert the building into apartments and retail space. (Lori Van Buren / Times Union)

Exterior of the former Rodgers Liquor Warehouse at 960 Broadway on Monday, Feb. 13, 2017 in Albany, N.Y. There are plans to convert the building into apartments and retail space. (Lori Van Buren / Times Union)

Construction continues on Albany Medical Center's Park South redevelopment project on Tuesday, Oct. 20, 2015 in Albany, N.Y. This is the corner of New Scotland Ave. and Morris St. (Lori Van Buren / Times Union)

Construction continues on Albany Medical Center's Park South redevelopment project on Tuesday, Oct. 20, 2015 in Albany, N.Y. This is the corner of New Scotland Ave. and Morris St. (Lori Van Buren / Times Union)

Construction continues on Albany Medical Center's Park South redevelopment project on Tuesday, Oct. 20, 2015 in Albany, N.Y. This is the parking garage on Myrtle Ave. Park South has received $3 million in awards from the Regional Economic Development Council. (Lori Van Buren / Times Union) less

Construction continues on Albany Medical Center's Park South redevelopment project on Tuesday, Oct. 20, 2015 in Albany, N.Y. This is the parking garage on Myrtle Ave. Park South has received $3 million in ... more

Inside an apartment in the latest high rise at Park South, a luxury apartment complex built by Tri City Rentals. A two-bedroom rents for $1,960 per month. (Photo provided)

Inside an apartment in the latest high rise at Park South, a luxury apartment complex built by Tri City Rentals. A two-bedroom rents for $1,960 per month. (Photo provided)

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Inside an apartment in the latest high rise at Park South, a luxury apartment complex built by Tri City Rentals. Rent for a two-bedroom starts at $1,960 per month. (Photo provided)

Inside an apartment in the latest high rise at Park South, a luxury apartment complex built by Tri City Rentals. Rent for a two-bedroom starts at $1,960 per month. (Photo provided)

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Inside a one-bedroom apartment in a high-rise apartment inside a high rise built by Tri City Rentals as part of Park South in Albany. Rent for one-bedrooms starts at $1,560. (Photo provided)

Inside a one-bedroom apartment in a high-rise apartment inside a high rise built by Tri City Rentals as part of Park South in Albany. Rent for one-bedrooms starts at $1,560. (Photo provided)

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Inside a two-bedroom apartment in a high-rise apartment inside a high rise built by Tri City Rentals as part of Park South in Albany. Rent for one-bedrooms starts at $1,560. (Photo provided)

Inside a two-bedroom apartment in a high-rise apartment inside a high rise built by Tri City Rentals as part of Park South in Albany. Rent for one-bedrooms starts at $1,560. (Photo provided)

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Developer says Quackenbush costs surged above budget

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Albany

The president of Syracuse-based Pioneer Companies said Friday afternoon that early bids on the Quackenbush Square project in downtown Albany came in 40 percent above budget, forcing a rethink of the entire development.

"It was 'Oh, my gosh, stop the train, let's regroup,'" said Melissa Zell, president and chief operating officer of Pioneer. The bids "came in way over budget. Significantly over," she said.

Zell said everyone involved in the project will meet Tuesday to see where costs can be reduced and what changes need to be made to get the project back on track.

But the massive 1.7-acre hole on Broadway just north of the Albany Visitors Center isn't likely to be filled anytime soon. While Zell said she hoped construction would begin sooner rather than later, much tweaking of the scope of the project needs to be done before work can begin.

And she said Pioneer's estimate of the cost to build the two apartment buildings, parking garage, hotel and retail space was $85 million to $90 million, not the $21 million that's been previously reported. "I wish it were just $21 million," she said.

Pioneer officials hadn't responded to earlier requests for comment. On Friday, the Times Union reported that it appeared work had been suspended at the site following completion of an environmental remediation project and that there was no indication when it might resume.

"There was always going to be a lag between the cleanup and the start of construction," she said. But the company hadn't expected the lag to last this long.

The hotel and garage plaza designs were nearly complete, and bids went out in January and February. It quickly became clear costs would be too high.

Since then, the company and its partners have looked at such things as whether the extended stay Hyatt House hotel with its large living spaces should instead be a different Hyatt brand, with smaller rooms, although the number would remain the same, at about 136. "For us, we really need to be above 120" to make the hotel work, she said.

The number of apartments in the two buildings may change as well.

"The last iteration was 181 units," she said. "This number has been up and down. That's one of the things we're looking at."

Zell said an apartment building in Syracuse that Pioneer developed attracted more empty-nesters, who filled the larger units, than expected. The building had targeted millennial adults, those between 22 and 37, who typically rent smaller apartments.

Zell said Pioneer wants to move ahead with the Albany project. The company has already invested millions — it paid $3.8 million for land acquisition alone — and now faces additional engineering and design costs.

"We already have a huge investment in the project. We are committed to building it," Zell said.

Pioneer hasn't yet applied for any tax breaks with the Albany Industrial Development Agency, officials there said Friday.

At Tuesday's meeting, "we're hoping to go through and finalize our list of changes," she said. "I think that by June 1 we're going to have a better idea of what our schedule is."